Product usage rate

What is the product usage rate?

Product usage refers to the information that shows when and how successfully your consumers use the product or service. Intelligence on product usage is an essential resource for every organization since it may assist you in better comprehending the customers. Professionals may enhance their business choices and marketing strategies with the aid of such information.

Monitoring the appropriate product usage indicators may encourage innovation since they can reveal what the customer wants, which surface-level data won’t be able to reveal. It assists product teams in making sense of usage statistics and maintaining continual awareness of the product’s most important features. If the product is simple to use and provides short time-to-value after signing up, the conversions are quicker and much higher.

Here are some important things Product Usage Rate can help with:

• Understand which product characteristics do various consumer groups find most appealing.
• Determine the success ratio of the on-platform engagement tactics.
• Success ratio of the on-platform engagement tactics.
• General effectiveness and stickiness of the product.
• The level of interest your customers show in your offering.
• How A/B testing affects user behavior in terms of product adoption.
• Make choices for the product’s improvement based on data.

How to measure product usage rate

Don’t use vanity metrics while assessing product usage. For example, the number of time someone logins each day reveals nothing about how they use the product. So, I f a software is utilized depending on users’ use cases, measuring the average time spent in apps gives you no information.

Monitoring product use rate helps you understand how customers interact with the product, where they become confused, and which aspects keep them coming back. There are several ways of measuring it, and one of them is product onboarding engagement rate.

The number of users that interact with the in-app onboarding is indicated by the product onboarding engagement rate. Although the majority of SaaS companies solely concentrate on the first onboarding phase, every product really has three onboarding phases:

• Primary onboarding: The first stage of onboarding concentrates on providing consumers with essential product capabilities to get them toward the activation point.
• Secondary onboarding: The next level of onboarding concentrates on exposing consumers to additional features for recurring client satisfaction.
• Tertiary onboarding: The last step of onboarding is on building product supporters and promoting account growth.

The product usage and loyalty will be directly impacted by tracking the onboarding engagement rate and trying out new in-app features to increase engagement. Each step of the onboarding process must be examined independently and monitor user interaction when determining the product onboarding engagement rate.

Product onboarding engagement rate to calculate product usage rate can be calculated by determining a ratio between the users that successfully navigate the onboarding procedure and all the users who initially began the onboarding process. To express the rate in percentage, multiply the ratio by a hundred.

There are several other ways to calculate product onboarding engagement, such as:

• Determining the percentage of users that complete the whole onboarding process in a specific time after signing up.
• Getting a ratio of the average number of completed key onboarding activities to the total number of key onboarding activities required.
• The typical length of time needed by users to complete all onboarding tasks.
• The progress rate of each onboarding stage.

Let’s look at the general formula below.

Product usage rate formula

Product Usage Rate through product onboarding engagement rate can be calculated with the formula below:

Let’s use an example for calculating the product usage rate with product onboarding engagement rate.

Product usage rate calculation example

Say, a SaaS business named XYZ launched an invoicing platform. Initially, 300 people signed up for the platform and enrolled in the onboarding procedure. At the end of onboarding, only 150 successfully understood the program completely to use and reap value from it. Therefore, the product usage rate based on product onboarding engagement rate will be:

Product onboarding engagement rate (In percentage) = Number of Users Successfully Completed Onboarding / Total Users at the beginning of onboarding x 100

Here,
Number of Users Successfully Completed Onboarding = 150
Total Users at the beginning of onboarding = 300
Therefore, Product onboarding engagement rate (In percentage) = 150 / 300 x 100 = 50%